Shamsian v. Atlantic Richfield Co.

132 Cal. Rptr. 2d 635, 107 Cal. App. 4th 967, 2003 Cal. Daily Op. Serv. 3103, 2003 Daily Journal DAR 3943, 2003 Cal. App. LEXIS 515
CourtCalifornia Court of Appeal
DecidedApril 10, 2003
DocketB157698
StatusPublished
Cited by88 cases

This text of 132 Cal. Rptr. 2d 635 (Shamsian v. Atlantic Richfield Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shamsian v. Atlantic Richfield Co., 132 Cal. Rptr. 2d 635, 107 Cal. App. 4th 967, 2003 Cal. Daily Op. Serv. 3103, 2003 Daily Journal DAR 3943, 2003 Cal. App. LEXIS 515 (Cal. Ct. App. 2003).

Opinion

Opinion

ASHMANN-GERST, J.

This appeal arises out of soil and groundwater contamination caused by gasoline leakage from an underground storage tank at a service station formerly operated by respondent Morris Shachory (Shachory), a sublessee of respondent Atlantic Richfield Company (ARGO). The appellants Parviz David Shamsian (Shamsian) and Roya Goltche (Goltche), the current possessors of the property, seek to hold Shachory and ARGO (collectively respondents) liable for statutory penalties, damages, future remediation, and injunctive relief. The trial court granted summary judgment for the respondents, which the appellants now challenge.

We hold that the appellants’ cause of action for civil penalties brought under Health and Safety Code section 25249.7, the civil enforcement provision in the Safe Drinking Water and Toxic Enforcement Act of 1986 (the Act), 1 is barred by the one-year limitation in Code of Civil Procedure section 340, subdivision (a). 2 Further, we conclude that there are triable issues as to whether the appellants’ nuisance and trespass causes of action are barred by the three-year limitation set forth in section 338, subdivision (b), and as to whether the appellants are entitled to a declaration of rights regarding future remediation, but that there are no triable issues as to whether the respondents are liable for negligent misrepresentation. Finally, even though the appellants may not state a cause of action for injunctive relief, we instruct the trial court on remand to permit the appellants to incorporate their request for injunctive relief into their nuisance cause of action. We reverse and remand.

Factual and Procedural History

1. Background.

From November 8, 1967, to September 30, 1990, Shachory subleased property in Los Angeles (the property) from ARCO for the purpose of *973 operating a service station. In the late 1980’s, site investigations revealed the presence of hydrocarbons in the subsurface soil and groundwater, prompting ARCO to initiate a remediation program. In 1996, Geraghty & Miller, Inc., an environmental services company working on behalf of ARCO, prepared a site closure request for the Los Angeles Regional Water Quality Control Board (RWQCB) summarizing the remediation efforts, the removal of contaminants, and the results of various tests. In response to and based on the site closure request, the RWQCB issued a “no further action” letter indicating that ARCO had completed the site investigation and remedial action.

In 1997, Shamsian negotiated a ground lease of the property on behalf of his wife, Goltche, which she signed on December 11, 1997. 3 Before Goltche signed, however, Shamsian briefly reviewed the site closure request prepared by Geraghty & Miller, Inc., for the RWQCB. When the appellants’ contractor began installing new underground storage tanks, he discovered a strong odor and discolored soil. Subsequently, the appellants hired Environmental Managers & Auditors, Inc., to determine whether the subsurface soil and groundwater had been impacted with hydrocarbons. In May 1998, Environmental Managers & Auditors, Inc., reported that the property was contaminated above regulatory limits, and in greater levels than detected by Geraghty & Miller, Inc.

2. The complaint.

On May 19, 2000, the appellants filed suit, inter alia, against ARCO and Shachory. Against ARCO, the appellants alleged a cause of action for civil penalties, alleging that ARCO violated Health and Safety Code section 25249.5 by knowingly discharging chemicals in such a manner likely to contaminate a source of drinking water. Additionally, the appellants sued *974 ARCO and Shachory for private nuisance, trespass, negligent misrepresentation, declaratory relief, 4 and injunctive relief. The negligent misrepresentation claim was based on Shamsian’s alleged reliance on the site closure request in making the decision for the appellants to enter into the ground lease for the property.

3. ARCO and Shachory’s motions for summary judgment or adjudication.

In its motion, ARCO argued that the appellants’ cause of action for civil penalties is barred by the one-year limitation in section 340, subdivision (a). The respondents, in both their motions, argued that the nuisance and trespass causes of action are barred by the three-year limitation in section 338, subdivision (b) because this action was filed more than three years after Shachory vacated the property in 1990 and ARCO vacated the property in 1996, and because the nuisance is permanent rather than continuing. Both respondents urged the trial court to conclude that the nuisance is permanent based on the determination by RWQCB that ARCO completed the necessary corrective action in 1996. Further, they argued that even if the nuisance was a continuing one, the claim would have to fail because the appellants have not suffered allowable damages. Regarding the negligent misrepresentation claim, both respondents argued that the site closure request made no misrepresentations/ Finally, both respondents argued that the appellants’ declaratory relief and injunctive relief claims fail if all the other claims fail.

4. The trial court’s ruling, the judgment, and this appeal.

After oral argument, the trial court ruled as follows: The cause of action for civil penalties is barred by section 340, subdivision (a). The nuisance and trespass causes of action are barred by section 338, subdivision (b) because the appellants’ “interrogatory responses indicate that the chemical releases [occurred] while [ARCO’s] franchisee operated the premises, i.e., before 1991. Further, the RWQCB determined on 10/25/96 that [ARCO] had abated the contamination in compliance with regulatory standards. That determination has not been reopened or set aside.” There is no triable issue as to whether either ARCO or Shachory misrepresented any facts to the appellants. Because the appellants have not suffered any loss through the payment of an adverse judgment or settlement, the declaratory relief cause of action and request for equitable indemnity lack merit. Finally, the absence of a viable substantive claim forecloses the request for injunctive relief.

Thereafter, the trial court entered judgment for ARCO and Shachory. This timely appeal followed.

*975 5. The RWQCB’s October 25, 2002 case reopen letter.

After this appeal was filed, the RWQCB sent a case reopen letter to ARCO, stating in part: “This letter is written with regard to the need for a renewed investigation of methyl tertiary butyl ether (MTBE) pollution at the subject site. On October 25, 1996, this Regional Board issued a case closure letter for the site. At the time of closure, no MTBE analytical [data] related to the Underground Storage Tank (UST) release were available for review by the Regional Board staff.

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132 Cal. Rptr. 2d 635, 107 Cal. App. 4th 967, 2003 Cal. Daily Op. Serv. 3103, 2003 Daily Journal DAR 3943, 2003 Cal. App. LEXIS 515, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shamsian-v-atlantic-richfield-co-calctapp-2003.